AI and digitalisation needed to support a clean energy transition: report

According to a Siemens survey of the energy sector, over 70% of respondents believe that digital technologies, particularly artificial intelligence (AI) and grid software, are essential to enabling the clean energy transition. Such technology aims to support the integration of renewables, transition to electrification, and optimisation of energy efficiency — all of which are key to reducing fossil fuel usage.

The Siemens Infrastructure Transition Monitor 2025, which surveyed 1400 senior executives across 19 countries, shows that 59% of energy industry leaders plan major investments in autonomous systems for grids, and 68% view them as crucial for cutting emissions. Nearly three-quarters (72%) of organisations in the sector say that, over the next three years, AI will transform how their business operates, with 74% saying that AI is helping to make critical infrastructure more resilient.

Respondents indicated that the most likely outcomes from increased use of autonomous systems to manage power grids are lower operating costs, increased energy efficiency, and greater reliability.

While the 2025 study indicated significant progress on a number of important goals such as the phase-out of fossil fuel energy and the expansion of large-scale energy storage and renewable generation (compared to results in the 2023 Infrastructure Transition Monitor), there are still opportunities for even greater progress.

Indeed, over half of companies in the energy sector (58%) say uncertainty about future energy system design is delaying investment in clean energy technologies. And, while 65% agree that electrification is the most feasible way to achieve net zero energy systems, 73% report that it is being held back by inadequate grid infrastructure.

“Outdated grid infrastructure poses a serious threat to the clean energy transition,” said Sabine Erlinghagen, CEO of Siemens Grid Software. “By harnessing digital technologies to move towards autonomous grids, it is possible to boost grid capacity, ensuring its reliability and resilience.

“To that end, regulation must also keep pace with digitalisation and innovation — ensuring that our energy systems are equipped to meet the demands of a clean energy future.”

Image credit: iStock.com/Phillip Wittke